Section 1288 in The Jayanti Shipping Company (Acquisition Of Shares) Act, 1971
1288.
The management of the Jayanti Shipping Company was taken over by the Central Government on the 10th June, 1966 under an Ordinance following serious complaints against the then management The Ordinance was replaced by the Jayanti Shipping Company (Taking Over of Management) Act, 1966. The Shipping Corporation of India Ltd., an undertaking wholly owned by the Central Government were appointed managing agents of the Jayanti Shipping Company Ltd. The new management was also able to restore sound working of the company and the finances of the company showed constant improvement during the period 1966-71. In enablinit the Jayanti Shipping Company to revive, the Shipping Development Fund Committee, a statutory body set up under the Merchant Shipping Act, 1958, also played a significant role.2. The new management of the company found during investigations into the past affairs and financial dealings of the company that large amount of funds belonging to the Jayanti Shipping Company Ltd; had been misappropriated by the major shareholders and had to file civil suits in India and abroad to recover these amounts. Further, the fleet of the company, which was operated by the new management profitably during 1966-71 was belonging aged and the future profitability of the company could be ensured only by taking suitable measures for expanding the fleet of the company. In the circumstances, the future expansion and continued profitable management of the assets could be achieved only by ensuring ownership of the company in proper hands. This has been felt to be necessary not only from the point of view of the company but also the larger and pressing interests of national shipping, Government, therefore, decided to acquire all the shares of the Jayanti Shipping Company Limited.3. As Parliament was not in session, an Ordinance called the Jyanti Shipping Company (Acquisition of Shares) Ordinance, 1971, was promugated by the President on the 17th October, 1971. The Bill to replace the Ordinance. - Gazette of India, 26-11-1971, Pt. II, S.2, Ext., p. 789.[23rd December, 1971]An Act to provide for the acquisition of the shares of the Jayanti Shipping Company Limited in order to serve better the shipping needs of the nation and to facilitate the promotion and development, in the interests of the general public, of national shipping and for matters connected therewith or incidental thereto.
